Revenue growth reached 21.5% in 2026Q1, yet operating margins remain constrained in the mid-single digits at 7.7%, suggesting limited scalability in the current cost structure.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 812.38M | 774.38M | 557.93M | 544.85M | 422.63M | 324.14M | 316.01M | 341.87M | 337.34M | 345.05M | 417.01M | 370.08M | 263.22M | 197.32M | 135.05M | 139.19M | 140.6M | 138.99M | 217.89M | 235.95M | 135.36M | 81.52M | 69.37M | 68.97M | 78.88M | 90.99M | 89.82M | 23.86M | 26.38M | 14.53M | 9.85M |
| Revenue Growth % | 33.55% | 38.79% | 2.4% | 28.92% | 30.38% | 2.57% | -7.56% | 1.34% | -2.23% | -17.26% | 12.68% | 40.6% | 33.4% | 46.1% | -2.97% | -1% | 1.16% | -36.21% | -7.66% | 74.32% | 66.04% | 17.52% | 0.58% | -12.57% | -13.32% | 1.31% | 276.4% | -9.55% | 81.55% | 47.56% | 16.74% |
| Cost of Goods Sold | 533.93M | 521.32M | 361.79M | 373.83M | 294.4M | 223.22M | 210.88M | 227.77M | 225.8M | 231.86M | 282.15M | 258.51M | 178.39M | 135.76M | 92.61M | 101.02M | 107.95M | 108.04M | 174.5M | 195.55M | 111.26M | 64.52M | 56.27M | 55.15M | 62.98M | 72.46M | 71.72M | 15.47M | 17.95M | 8.12M | 5.19M |
| COGS % of Revenue | - | 67.32% | 64.84% | 68.61% | 69.66% | 68.86% | 66.73% | 66.62% | 66.94% | 67.2% | 67.66% | 69.85% | 67.77% | 68.8% | 68.57% | 72.58% | 76.78% | 77.74% | 80.09% | 82.88% | 82.2% | 79.15% | 81.12% | 79.97% | 79.85% | 79.63% | 79.85% | 64.85% | 68.05% | 55.85% | 52.68% |
| Gross Profit | 278.45M | 253.06M | 196.15M | 171.02M | 128.22M | 100.92M | 105.13M | 114.1M | 111.54M | 113.19M | 134.86M | 111.56M | 84.82M | 61.55M | 42.44M | 38.17M | 32.65M | 30.94M | 43.39M | 40.41M | 24.1M | 17M | 13.1M | 13.82M | 15.89M | 18.53M | 18.1M | 8.39M | 8.43M | 6.41M | 4.66M |
| Gross Margin % | 34.28% | 32.68% | 35.16% | 31.39% | 30.34% | 31.14% | 33.27% | 33.38% | 33.06% | 32.8% | 32.34% | 30.15% | 32.23% | 31.2% | 31.43% | 27.42% | 23.22% | 22.26% | 19.91% | 17.12% | 17.8% | 20.85% | 18.88% | 20.03% | 20.15% | 20.37% | 20.15% | 35.15% | 31.95% | 44.15% | 47.32% |
| Gross Profit Growth % | - | 29.02% | 14.7% | 33.37% | 27.05% | -4% | -7.86% | 2.3% | -1.46% | -16.06% | 20.88% | 31.52% | 37.8% | 45.03% | 11.2% | 16.89% | 5.53% | -28.69% | 7.39% | 67.67% | 41.75% | 29.82% | -5.23% | -13.06% | -14.25% | 2.4% | 115.77% | -0.5% | 31.4% | 37.66% | 25.94% |
| Operating Expenses | 216.81M | 201.35M | 160.74M | 136.45M | 106.06M | 91.06M | 91.78M | 96.11M | 97.14M | 96.11M | 101.97M | 94.9M | 61.14M | 47.36M | 25.76M | 25.8M | 27.62M | 29.66M | 35.2M | 27.77M | 18.05M | 13.47M | 11.91M | 11.98M | 13.69M | 15.53M | 16.09M | 7.95M | 7.29M | 6.44M | 3.94M |
| OpEx % of Revenue | - | 26% | 28.81% | 25.04% | 25.1% | 28.09% | 29.04% | 28.11% | 28.8% | 27.85% | 24.45% | 25.64% | 23.23% | 24% | 19.07% | 18.54% | 19.64% | 21.34% | 16.15% | 11.77% | 13.34% | 16.53% | 17.17% | 17.38% | 17.36% | 17.06% | 17.91% | 33.3% | 27.64% | 44.31% | 40.03% |
| Selling, General & Admin | 198.52M | 200.73M | 146.7M | 122.94M | 93.47M | 81.8M | 76.93M | 85.98M | 87.46M | 88.97M | 81.74M | 69.29M | 51.44M | 37.1M | 25.43M | 25.36M | 27.51M | 28.9M | 33.65M | 26.15M | 16.82M | 12.31M | 10.66M | 10.4M | 11.9M | 13.21M | 13.93M | 7.22M | 6.67M | 6.05M | 3.52M |
| SG&A % of Revenue | - | 25.92% | 26.29% | 22.56% | 22.12% | 25.24% | 24.34% | 25.15% | 25.93% | 25.79% | 19.6% | 18.72% | 19.54% | 18.8% | 18.83% | 18.22% | 19.57% | 20.8% | 15.44% | 11.08% | 12.43% | 15.1% | 15.36% | 15.08% | 15.09% | 14.51% | 15.51% | 30.24% | 25.3% | 41.67% | 35.79% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3.23M | 619K | 14.05M | 13.5M | 12.59M | 9.27M | 14.86M | 10.13M | -365K | 106K | 310K | -2.08M | -2.31M | 982K | -152K | 441K | 105K | 759K | 1.55M | 1.62M | 1.23M | 1.17M | 1.25M | 1.58M | 1.79M | 2.32M | 2.15M | 729.33K | 617.96K | 384.66K | 416.99K |
| Operating Income | 61.65M | 51.71M | 35.4M | 34.57M | 22.16M | 9.86M | 13.35M | 17.99M | 10M | 8.02M | -25.56M | 5.38M | 22.41M | 6.97M | 16.68M | 12.37M | 5.04M | -15.83M | 8.2M | 12.63M | 6.05M | 3.52M | 1.19M | 1.83M | 2.2M | 3M | 2.01M | 441.57K | 1.14M | -24.25K | 718.24K |
| Operating Margin % | 7.59% | 6.68% | 6.35% | 6.34% | 5.24% | 3.04% | 4.22% | 5.26% | 2.96% | 2.33% | -6.13% | 1.45% | 8.52% | 3.53% | 12.35% | 8.89% | 3.58% | -11.39% | 3.76% | 5.35% | 4.47% | 4.32% | 1.71% | 2.66% | 2.79% | 3.3% | 2.24% | 1.85% | 4.31% | -0.17% | 7.29% |
| Operating Income Growth % | - | 46.07% | 2.41% | 55.99% | 124.83% | -26.14% | -25.81% | 79.86% | 24.65% | 131.39% | -574.87% | -75.98% | 221.47% | -58.21% | 34.89% | 145.59% | 131.81% | -293.17% | -35.14% | 108.93% | 71.55% | 197.47% | -35.39% | -16.67% | -26.76% | 49.52% | 355.14% | -61.16% | 4787.09% | -103.38% | 1170.39% |
| EBITDA | 86.03M | 76.59M | 49.93M | 47.08M | 32.77M | 19.71M | 23.27M | 28.6M | 23.1M | 24.11M | -6.66M | 31M | 32.56M | 13.73M | 17.01M | 13.77M | 6.79M | -15.07M | 11.37M | 14.26M | 7.28M | 4.69M | 2.44M | 3.42M | 3.99M | 5.33M | 4.16M | 1.17M | 1.75M | 360.41K | 1.14M |
| EBITDA Margin % | 10.59% | 9.89% | 8.95% | 8.64% | 7.76% | 6.08% | 7.36% | 8.37% | 6.85% | 6.99% | -1.6% | 8.38% | 12.37% | 6.96% | 12.6% | 9.89% | 4.83% | -10.84% | 5.22% | 6.04% | 5.38% | 5.76% | 3.52% | 4.95% | 5.06% | 5.85% | 4.64% | 4.91% | 6.65% | 2.48% | 11.53% |
| EBITDA Growth % | -18.6% | 53.42% | 6.05% | 43.63% | 66.29% | -15.29% | -18.64% | 23.79% | -4.19% | 462.1% | -121.48% | -4.82% | 137.12% | -19.28% | 23.59% | 102.63% | 145.08% | -232.54% | -20.24% | 95.95% | 55.07% | 92.37% | -28.58% | -14.41% | -25.07% | 27.87% | 255.65% | -33.27% | 386.89% | -68.25% | 133.49% |
| D&A (Non-Cash Add-back) | 24.39M | 24.88M | 14.52M | 12.51M | 10.61M | 9.85M | 9.92M | 10.61M | 13.1M | 16.09M | 18.9M | 25.61M | 10.15M | 6.76M | 331K | 1.4M | 1.76M | 759K | 3.18M | 1.62M | 1.23M | 1.17M | 1.25M | 1.58M | 1.79M | 2.32M | 2.15M | 729.33K | 617.96K | 384.66K | 416.99K |
| EBIT | 53.36M | 103.76M | 30.71M | 34.94M | 27.71M | 12.04M | 15.38M | 18.74M | 9.64M | 10.48M | -25.25M | 2.87M | 23.83M | 7.95M | 16.53M | 12.82M | 4.9M | -16.59M | 10.12M | 12.63M | 6.05M | 3.52M | 1.19M | 1.36M | 2.21M | 3.01M | 2.05M | 305.21K | 1.88M | -24.25K | 718.24K |
| Net Interest Income | -19.44M | -20.91M | -13.02M | -13.42M | -5.42M | -2.95M | -3.54M | -5.4M | -7.14M | -6.72M | -7.71M | -5.96M | -3.14M | -1.5M | -1.17M | -1.14M | -1.23M | -1.32M | -1.48M | -1.98M | -2M | -2.41M | -2.56M | -2.27M | -2.74M | -3.54M | -3.81M | 0 | -192.75K | 0 | -154.84K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67.81K | 0 | 0 |
| Interest Expense | 19.44M | 20.91M | 13.02M | 13.42M | 5.42M | 2.95M | 3.54M | 5.4M | 7.14M | 6.72M | 7.71M | 5.96M | 3.14M | 1.5M | 1.17M | 1.14M | 1.23M | 1.32M | 1.48M | 1.98M | 2M | 2.41M | 2.56M | 2.27M | 2.74M | 3.54M | 3.81M | 158.43K | 260.57K | 22.32K | 154.84K |
| Other Income/Expense | -22.98M | 31.13M | -17.71M | -13.04M | 1.53M | -5.18M | -1.5M | -4.65M | -7.5M | -6.62M | -7.4M | -8.04M | -5.45M | -517K | -1.32M | -685K | -1.36M | -19.19M | -519K | -1.97M | -1.19M | -3.31M | -2.36M | -2.4M | -2.85M | -3.15M | -3.04M | -101.58K | -187.87K | -46.38K | -72.07K |
| Pretax Income | 38.66M | 82.84M | 17.69M | 21.52M | 23.69M | 4.67M | 11.84M | 13.34M | 2.5M | 1.41M | -32.96M | -2.66M | 16.96M | 6.46M | 15.36M | 11.72M | 3.68M | -17.91M | 7.64M | 10.67M | 4.86M | 212K | -1.18M | -228K | -339K | -141K | -1.03M | 295.71K | 944.05K | -70.63K | 646.17K |
| Pretax Margin % | 4.76% | 10.7% | 3.17% | 3.95% | 5.61% | 1.44% | 3.75% | 3.9% | 0.74% | 0.41% | -7.9% | -0.72% | 6.44% | 3.27% | 11.38% | 8.42% | 2.61% | -12.89% | 3.5% | 4.52% | 3.59% | 0.26% | -1.7% | -0.33% | -0.43% | -0.15% | -1.15% | 1.24% | 3.58% | -0.49% | 6.56% |
| Income Tax | 17.25M | 29.74M | 3.27M | 7.02M | 5.43M | 2.69M | 3.67M | -4.36M | 9.62M | 4.44M | 5.29M | 3.07M | 3.89M | -102K | 4.51M | 3.41M | 1.37M | -3.14M | 2.63M | 4.36M | 1.77M | 647K | -248K | -62K | -216K | 131K | -303.75K | 151.36K | 373.32K | 7.2K | 205.79K |
| Effective Tax Rate % | 44.62% | 35.9% | 18.48% | 32.63% | 22.91% | 57.57% | 31% | -32.7% | 385.18% | 314.98% | -16.05% | -115.4% | 22.91% | -1.58% | 29.38% | 29.1% | 37.3% | 17.55% | 34.39% | 40.89% | 36.36% | 305.19% | 21.09% | 27.19% | 63.72% | -92.91% | 29.42% | 51.19% | 39.54% | -10.19% | 31.85% |
| Net Income | 17.12M | 50.05M | 12.96M | 12.91M | 17.42M | 1.43M | 8.21M | 17.71M | -7.12M | -3.03M | -38.22M | -5.6M | 13.08M | 6.56M | 10.85M | 8.27M | 2.1M | -15.03M | 5.01M | 6.3M | 3.09M | -435K | -928K | -166K | -123K | -264K | -689.92K | -366.16K | 532.93K | -53.77K | 301.08K |
| Net Margin % | 2.11% | 6.46% | 2.32% | 2.37% | 4.12% | 0.44% | 2.6% | 5.18% | -2.11% | -0.88% | -9.16% | -1.51% | 4.97% | 3.32% | 8.03% | 5.94% | 1.5% | -10.82% | 2.3% | 2.67% | 2.29% | -0.53% | -1.34% | -0.24% | -0.16% | -0.29% | -0.77% | -1.53% | 2.02% | -0.37% | 3.06% |
| Net Income Growth % | -63.9% | 286.29% | 0.36% | -25.87% | 1121.39% | -82.63% | -53.63% | 348.66% | -135.09% | 92.07% | -582.22% | -142.84% | 99.44% | -39.57% | 31.17% | 292.97% | 114% | -400.04% | -20.54% | 103.78% | 811.26% | 53.13% | -459.04% | -34.96% | 53.41% | 61.73% | -88.42% | -168.71% | 1091.05% | -117.86% | 717.77% |
| Net Income (Continuing) | 21.41M | 53.11M | 14.42M | 14.5M | 18.26M | 1.98M | 8.17M | 17.71M | -7.12M | -3.03M | -38.25M | -5.73M | 13.08M | 6.56M | 10.85M | 8.27M | 2.31M | -14.77M | 5.68M | 6.3M | 3.09M | -435K | -928K | -667K | -306K | -264K | -690K | 99.01K | 945.48K | -53.77K | 301.08K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5M | 5.65M | 4.2M | 4.85M | 4.92M | 1.4M | 953K | 0 | 0 | 0 | 0 | 5.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 59.92K | 98.54K | 149.94K | 248.29K | 964.2K |
| EPS (Diluted) | 0.47 | 1.37 | 0.36 | 0.37 | 0.50 | 0.04 | 0.23 | 0.50 | -0.21 | -0.09 | -1.12 | -0.19 | 0.50 | 0.32 | 0.65 | 0.51 | 0.15 | -1.06 | 0.30 | 0.45 | 0.24 | -0.04 | -0.09 | -0.02 | -0.01 | -0.03 | -0.08 | -0.04 | 0.06 | -0.01 | 0.04 |
| EPS Growth % | -64.17% | 280.56% | -2.7% | -26% | 1146.88% | -82.57% | -54% | 338.1% | -138.91% | 92.15% | -489.47% | -138% | 56.25% | -50.77% | 27.45% | 240% | 114.15% | -453.33% | -33.33% | 87.5% | 651.72% | 53.18% | -452.98% | -31.25% | 61.68% | 59.81% | -111.45% | -165.5% | - | -117% | - |
| EPS (Basic) | - | 1.42 | 0.37 | 0.37 | 0.50 | 0.04 | 0.23 | 0.51 | -0.21 | -0.09 | -1.12 | -0.19 | 0.51 | 0.33 | 0.73 | 0.58 | 0.15 | -1.06 | 0.34 | 0.47 | 0.27 | -0.04 | -0.09 | -0.02 | -0.01 | -0.03 | -0.08 | -0.04 | 0.06 | -0.01 | 0.04 |
| Diluted Shares Outstanding | 36.76M | 36.6M | 35.69M | 35.33M | 35.01M | 35.59M | 35.52M | 35.48M | 34.71M | 34.45M | 33.98M | 28.79M | 26.2M | 20.72M | 17.25M | 17.12M | 17.1M | 14.22M | 15.41M | 14.04M | 12.89M | 9.99M | 9.99M | 9.85M | 9.58M | 7.9M | 8.3M | 9.32M | 8.65M | 7.95M | 7M |
| Basic Shares Outstanding | 35.64M | 35.33M | 34.93M | 34.67M | 34.67M | 35.35M | 35.29M | 34.99M | 33.91M | 33.66M | 33.98M | 28.79M | 25.75M | 20.12M | 14.81M | 14.39M | 14.31M | 14.22M | 14.77M | 13.46M | 11.26M | 9.99M | 9.99M | 9.85M | 9.58M | 7.9M | 8.2M | 8.25M | 8.22M | 7.55M | 7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 45.4% | 66.14% | 22.67% | 8.8% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operating margin scalability concerns
As reported in recent financial filings, CECO has demonstrated significant top-line momentum, achieving a 38.8% year-over-year revenue growth rate in the most recent period, which suggests that the company is successfully capturing increased demand within its specialized industrial air and fluid systems end-markets.
The consistent double-digit revenue growth indicates that the company's pivot toward high-growth sectors like semiconductor fabrication and EV manufacturing is gaining traction. Investors should monitor whether this trajectory is sustainable or if it remains heavily dependent on the timing of large-scale project completions.
According to the provided income statement data, CECO has maintained a relatively stable gross margin profile, hovering around the 33% to 36% range, which suggests that the company possesses a degree of pricing power despite the inherent volatility of its custom-engineered industrial project business.
This margin consistency implies that the company is effectively managing its input costs, such as steel and specialized alloys, despite broader inflationary pressures. However, the lack of significant margin expansion during periods of rapid revenue growth warrants further investigation into the company's ability to command premium pricing.
Based on the reported figures, CECO's operating margins have failed to scale proportionally with revenue, remaining in the mid-single digits, which indicates that the company's SG&A expenses are rising in tandem with top-line growth, thereby limiting the conversion of revenue into meaningful operating income.
The persistent gap between gross and operating margins suggests that the company is carrying a high fixed-cost burden or is investing heavily in administrative infrastructure to support its global expansion. This lack of operating leverage may indicate that the business model requires significant overhead to execute its complex, project-based contracts.
Analysis of the income statement reveals that net income remains highly sensitive to non-operating items and stock-based compensation, which reached $13.1 million in 2026Q1, potentially obscuring the underlying operational profitability of the firm as reported in recent quarterly disclosures.
The significant fluctuation in quarterly net income, particularly when compared to the more stable gross profit, suggests that investors should focus on adjusted metrics to gauge true performance. The elevated level of stock-based compensation warrants caution, as it may be diluting shareholder value without a commensurate increase in core operating efficiency.
While revenue growth is robust, the company's reliance on percentage-of-completion accounting, as noted in financial documentation, introduces the risk that reported figures may overstate current cash-generating capabilities if project milestones face unexpected delays or cost overruns in the future.
Short-term investors should be wary of the potential for margin compression if the company is forced to absorb rising labor or material costs on fixed-price contracts. The disconnect between high revenue growth and modest net income suggests that the company's operational execution is not yet optimized for profitability.
Quick answers to the most common questions about buying CECO stock.
For fiscal year 2025, CECO Environmental Corp. (CECO) reported total revenue of $774.4M. This represents a 7763.6% increase compared to $9.8M in 1996.
CECO Environmental Corp. (CECO) is profitable, generating $50.1M in net income for the fiscal year ending 2025 with a net profit margin of 6.5%.
CECO Environmental Corp. (CECO) reported an operating income of $51.7M, resulting in an operating profit margin of 6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
CECO Environmental Corp. (CECO) generated $253.1M in gross profit for the year, representing a gross profit margin of 32.7%. This demonstrates the company's core pricing power and production efficiency.